Statoil CEO resigns amid corruption allegations

Statoil, Norway's biggest oil and gas firm, has confirmed that its chief executive Olav Fjell has resigned because of a police probe into possible corruption in the group's dealings with Iran.

The news comes just after Chairman Leif Terje Loeddesoel stood down. This marks the biggest crisis for the group since it was partly privatised in 2001.

Both men were under pressure to quit after Norwegian police launched a probe this month into a Statoil deal to pay about $16m (€23m) to London-based consultants linked to Iran, suspecting the scheme might be bribes to win contracts from Tehran.

Chief Financial Officer Inge Hansen will take over as interim CEO from Fjell, 52, who has been Statoil's CEO since 1999.

Hansen said. "I am going to work hard and work to get the employees with me," confirming he is a candidate to take over permanently as CEO.

Statoil shares dropped 1.9% Monday, on uncertainty about the company's management. Until this scandal broke, investors had applauded Fjell's leadership of the state-controlled group.

Statoil is the development phase operator of Iran's South Pars gas field in the Gulf - its first in a planned drive into the Middle East.